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I may have missed the discussion on this....but this a very important
development for all shareholders of companies that are listed on defunct
regional stock exchanges.

Tandav

New SEBI rules for exclusively listed firms

13 June 2012, Mumbai, Team MP

Asks members of non-operational exchanges to allow better valuation of shareholders’ assets.

The
Securities and Exchange Board of India (SEBI) vide a circular dated 30
May 2012 has issued an exit policy for de-recognised/non-operational
stock exchanges. As per the circular, the exchanges may seek exit
through voluntary surrender of recognition. SEBI has directed the
exclusively listed companies on these exchanges to follow the process to
give exit option to their shareholders. These companies shall list on
any other recognised stock exchange.

SEBI has also directed the
recognised stock exchange to carry out changes to their listing
eligibility criteria in the interest of investors, so that exclusively
listed companies can be listed on recognised stock exchange. In this
regard the stock exchanges shall issue the differential listing
eligibility criteria for such companies.

There are several
companies - like Jullundur Motor Limited, Raunaq International Limited,
The Ramaraju Surgical Cotton Mills Limited and Bharat Nidhi Limited,
which are exclusively listed on de-recognised/non-operational stock
exchanges having great intrinsic value and big net assets values with
lot of business potential, but because of non-operational nature of
stock exchanges, shareholders of these companies do not get an exit
option. These shareholders also do not get the true and fair value of
their investments, as the shares of these companies are not traded and
true price identification is not possible. The circular bring cheers to
these shareholders.

Providing the listing platform for these
exclusively listed companies, SEBI has protected the interest of
shareholders and has also created a transparent and fair share pricing
mechanism of their investments. It also provides the true and timely
information about the financials of these companies and any other
corporate information which is required to be published by any listed
company.